Q: Why do some franchises cost more than others?
Mar 23 2006
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Given the vast range of businesses available and the sectors they operate in, this is inevitable. For instance, it will cost more to establish a high street location than setting up at home or from a vehicle. There is also the varying lengths of the initial training and the costs a franchisor will incur as a result - a one-week training programme will obviously be cheaper than a one-month programme.
A large brand name will also cost more than a lesser-known business in view of the inherent value of the brand. You should be aware that the average franchise fee is circa £15,000, so if a franchisor charges a higher figure you should assess whether it’s value for money. Any franchisor should be able to break down the costs of a franchise for you or provide you with all the information you need to conduct this analysis yourself. If a 'franchise package' is stated you should find out exactly what you're getting for your money, so there are no assumptions or surprises. A package should include the operating licence and training as standard.
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